MIRA INFORM REPORT

 

 

Report Date :

04.02.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. AGUNG SEJAHTERA SIDORAHARJATEX

 

 

Registered Office :

Jalan Raya Palur Km. 9,1 Desa Jetis Jaten  Karanganyar, Central Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

31.01.1990

 

 

Com. Reg. No.:

No. AHU-16537.HT.01.02.Tahun 20111

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Textile Industry

 

 

No. of Employees :

480 persons

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Indonesia

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

Indonesia - ECONOMIC OVERVIEW

 

Indonesia, a vast polyglot nation, grew an estimated 6.1% and 6.4% in 2010 and 2011, respectively. The government made economic advances under the first administration of President YUDHOYONO (2004-09), introducing significant reforms in the financial sector, including tax and customs reforms, the use of Treasury bills, and capital market development and supervision. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth in 2009. The government has promoted fiscally conservative policies, resulting in a debt-to-GDP ratio of less than 25%, a small current account surplus, a fiscal deficit below 2%, and historically low rates of inflation. Fitch and Moody's upgraded Indonesia's credit rating to investment grade in December 2011. Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among regions. The government in 2012 faces the ongoing challenge of improving Indonesia's insufficient infrastructure to remove impediments to economic growth, labor unrest over wages, and reducing its fuel subsidy program in the face of rising oil prices.

 

 

Source : CIA

 

 


Name of Company

 

P.T. AGUNG SEJAHTERA SIDORAHARJATEX

 

 

Address

 

Head Office & Factory

Jalan Raya Palur Km. 9,1

Desa Jetis Jaten

Karanganyar, Central Java

Indonesia

Phones - (62-271) 821800, 826655, 821716

Fax                   - (62-271) 825405

Land Area         - 20 hectares

Building Area    - 12 hectares

Region              - Industrial Zone

Status               - Owned

 

Date of Incorporation :

31 January 1990

 

Legal Form :

P.T. (Perseroan Terbatas) or Limited Liability Company

 

Company Reg. No. :

The Ministry of Law and Human Rights

            a.         No. C2-332.HT.01.01.TH.91

                        Dated 28 January 1991

            b.         No. C2-28804.HT.01.04.TH.1998

                        Dated 23 December 1998

            c.         No. AHU-42119.AH.01.02.Tahun 2008

                        Dated 17 July 2008

            d.         No. AHU-16537.HT.01.02.Tahun 20111

                        Dated 31 March 2011

 

Company Status :

Domestic Investment Company (PMDN)

 

Permit by the Government Department :

            a.         The Department of Finance

                        NPWP No. 01.515.292.9-526.000

 

            b.         The Capital Investment Coordinating Board

                        No. 179/I/PMDN/1990

                        Dated 27 February 1990

 

 

Related Companies :

a. P.T. AGUNG WISATEX (Textile Industry)

b. P.T. AGUNG KUNCOROTEX (Textile Industry)

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital         - Rp. 180,000,000,000.-

Issued Capital               - Rp.   95,000,000,000.-

Paid up Capital             - Rp.   95,000,000,000.-

 

Shareholders/Owners :

            a. Mr. Wiryawan Arya, SE         - Rp. 51,300,000,000.- (54%)

     Address : Jl. Jembangan RT.01/09,

                     Karanganyar, Central Java

                     Indonesia

            b. Mr. Drs. Santosa Arya, Ak    - Rp. 38,000,000,000.- (40%)

     Address : Jl. Dr. Sutomo No. 9B

                     Surakarta, Central Java

                     Indonesia

            c. Mr. Kuncoro Arya     - Rp.   5,700,000,000.- (  6%)

     Address : Jl. Martadinata No. 126

                     Surakarta, Central Java

                     Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Textile Industry

 

Production Capacity :

a. Weaving Yarn            - 25,000 bales p.a.

b. Grey Fabrics - 46.0 million meters p.a.

 

Total Investment :

a. Owned Capital           - Rp.   95.0 billion

b. Loan Capital  - Rp.   30.0 billion

c. Total Investment        - Rp. 125.0 billion

 

Started Operation :

1999

 

Brand Name :

Agung Sejahteratex

 

Technical Assistance :

None

 

Number of Employee :

480 persons

 

Marketing Area :

Local    - 100%

 

Main Customers :

Textile and Garment Industries

 

Market Situation :

Very Competitive

 

Main Competitors :

a. PT. Fuji Palapa Textile

b. PT. Sri Rejeki Isman

c. PT. Gunawantex

d. PT. Trisulatex

e. PT. Sinar Padasuka Textile

f.  PT. Badjatex, etc.

 

Business Trend :

Declining

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers  :

a. P.T. Bank CENTRAL ASIA Tbk.

    Karanganyar Branch

    Surakarta, Central Java

    Indonesia

b. P.T. Bank RAKYAT INDONESIA Tbk.

    Karanganyar Branch

    Surakarta, Central Java

    Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Total Sales/Income (estimated) :

2009 – Rp. 460.0 billion

2010 – Rp. 430.0 billion

2011 – Rp. 410.0 billion

2012 – Rp. 380.0 billion

 

Net Profit (estimated) :

2009 – Rp. 20.3 billion

2010 – Rp. 19.0 billion

2011 – Rp. 18.2 billion

2012 – Rp. 16.8 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

KEY EXECUTIVES

 

Board of Management :

President Director         - Mr. Wiryawan Arya, SE

Director                                    - Mr. Drs. Santosa Arya, Ak.

 

Board of Commissioners :

Commissioner               - Mr. Kuncoro Arya

 

Signatories :

President Director         (Mr. Wiryawan Arya, SE) or Director (Mr. Drs. Santosa Arya, Ak) which must be approved by Board of Commissioner (Mr. Kuncoro Arya)

 

 

CAPABILITIES

 

Management Capability :

G o o d

 

Business Morality :

G o o d

 

Credit Risk :

Average

 

Credit Recommendation :

Credit should be proceeded with monitor

 

Proposed Credit Limit :

Small amount – periodical review

 

 

 

 

OVERALL PERFORMANCE

 

P.T. AGUNG SEJAHTERA SIDORAHARDJATEX (P.T. ASS) was established in Karanganyar (Central Java) based Notarial Deed of Ruth K., SH., No. 75 dated January 13, 1990 with an authorized capital of Rp. 38,000,000,000.- of which Rp. 10,000,000,000.- was issued and fully paid up.  The founding shareholders of the company are Mr. Kuncoro Arya and his sons Mr. Wiryawan Arya and Mr. Drs. Santosa Arya. They are Indonesian family business entrepreneurs of Chinese extraction.  The Articles of association has been approved by the Minister of Justice through Decision Letter No. C2-332.HT.01.01.TH.1991 dated January 28, 1991.  The Company’s article of association has been amended for several times.  In June 2008 the authorized capital was raised to Rp. 120,000,000,000.- of which Rp. 60,000,000,000.- was issued and fully paid up.  The shareholders of the company are Mr. Wiryawan Arya (54%), his younger brother Mr. Drs. Santosa Arya, Ak (40%) and his father Mr. Kuncoro Arya (6%).  The amendment to Articles of association has been approved by the Minister of Law and Human Rights through Decision Letter No. AHU-42119.AH.01.02.Tahun 2008 dated July 17, 2008.

 

Most recently by notarial deed of Ninoek Poernomo, SH., No. 82 dated December 28, 2011 the authorized capital was raised again to Rp. 180,000,000,000.- of which Rp. 95,000,000,000.- was issued and fully paid up.  But, no changes have been effected in term of its shareholding composition and capital structures to date.  The amendment to Articles of association has been approved by the Minister of Law and Human Rights through Decision Letter No. AHU-16537.AH.01.02.Tahun 2011 dated March 31, 2011.

 

P.T. ASS obtained a Domestic Capital Investment (PMDN) facility issued by the Capital Investment Coordinating Board (BKPM) in 1990 to deal with textile industry. Its plant is located at Jalan Raya Solo Sragen Km. 9,1, Desa Jetis Jaten, Karanganyar, Solo, Central Java on a land of 20 hectares. According to its license, P.T. ASS has annual production capacity of 15,000 bales of weaving yarns and 24 million of grey fabrics with an investment of Rp. 34.7 billion comprising own capital of Rp. 10.0 billion and the rest from loans.  In 1991, P.T. ASS started to operate commercially by keeping on adding machinery and other equipments of the plant.   The operation of the company has kept on growing and expanding its business. P.T. ASS now has a production capacity of 25,000 bales of weaving yarns and 46 million meters of grey fabrics per year.   Beside that, P.T. ASS changed its project plan in which the initial investment of Rp. 37.7 billion in 1990 was raised to Rp. 125.0 billion at present, which coming from own capital of Rp. 95 billion and the rest from loans.   P.T. ASS now has a production capacity of 25,000 bales of weaving yarns and 46 million meters of grey fabrics per year.  Current production of P.T. ASSS consist of 90% grey fabrics for domestic market and 10% weaving for export market, including Colombo, Abu Dhabi, Dubai, Vietnam, Bangladesh, etc. We observed that P.T. ASS is classified as a medium-sized company of its kind in the country of which the operation has been declining in the last three years.

 

Generally the demand for textile and textile products including polyester textured yarn, finished fabrics, garment, textile chemicals and raw materials has been fluctuating in the last five years.  According to the Central Bureau of Statistics (BPS) the Indonesian garments export in 2005 amounted to 369,500 tons (US$ 4,967.0 million) to 399,600 tons (US$ 5,608.1 million) in 2006, to 399,800 tons (US$ 5,712.9 million) in 2007 to 417,600 tons (US$ 6,092.2 million) in 2008 declined to 393,400 tons (US$ 5,735.6 million) in 2009 and rose again to 445,200 tons (US$ 6,598.0 million) in 2010 and to 450,900 tons (US$ 7,801.5 million) in 2011.

 

The Indonesia textile products export in 2005 amounted to 1,427.3 tons (US$ 3,704.0 million) to 1,477.800 tons (US$ 3,908.6 million) in 2006 to 1,473.6 tons (US$ 4,178.0 million) in 2007 declined to 1,312,200 tons (US$ 4,127.9 million) in 2008 to 1,369,600 tons (US$ 3,602.8 million) in 2009 to 1,525,900 tons (US$ 4,721.8 million) in 2010 and declined to 1,493,3000 tons (US$ 5,563.3 million) in 2011.   The export volume and value of the national TPT products in 2005 to 31 March 2012 are pictured on the following table.

 

            Year

Garment

Textile Products

(Thousand Ton)

(US$ Million)

(Thousand Ton)

(US$ Million)

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012*

333.1

339.9

327.3

369.5

399.6

399.8

417.6

393.4

445.2

450.9

111.7

3,887.2

4,037.9

4,351.9

4,967.0

5,608.1

5,712.9

6,092.2

5,735.6

6,598.0

7,801.5

1,873.3

1,425.9

1,307.5

1,300.4

1,427.3

1,477.8

1,473.6

1,312.2

1,369.6

1,525.9

1,493.3

   375.7

3,075.9

3,064.6

3,354.6

3,704.0

3,908.6

4,178.0

4,127.9

3,602.8

4,721.8

5,563.3

1,318.1

Source:  Central Bureau of Statistic       *) January to March 2012

 

Until this time P.T.  ASS has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. Therefore, the company has no obligation to publish financial statement publicly.   P.T. ASS’s management is very reclusive to outsider and rejecting to disclose its financial condition but we estimated the total sales turnover of the company in 2010 amounted to Rp. 430.0 billion declined to Rp. 410.0 billion in 2011 and dropped again to Rp. 380.0 billion in 2012.  Its estimated that the operation in 2012 yielded a net profit at Rp. 16.8 billion and the company has a total asset of Rp. 120.0 billion.  We observe that P.T. ASS is supported by financially strong behind it.  So far, we did not hear that the company having been black listed by the Central Bank (Bank Indonesia).

 

P.T. ASS's management is headed by Mr. Wiryawan Arya AKA Winyawan Arya, SE (52) as president director, a businessman with more than 20 years of experience in textile industry and trading.  In daily activities, he is assisted by his younger brother Mr. Drs. Santosa Arya, Ak (47) as director.  They have wide relations with many local companies operating in the textile and garment manufacturing.  So far, we did not hear that the company’s management involved in the business malpractices or detrimental cases that settled in the country. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia.

 

Considering the operation of P.T. ASS declined in the last three years and economic condition in the country is still unstable, we recommend to treat prudently in extending any new loan to the company.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.32

UK Pound

1

Rs.84.60

Euro

1

Rs.72.63

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.